Lynas to raise $200 million for plant - The West Australian

UPDATE 10.30am: Lynas Corporation has announced a $200 million capital raising a day after a Malaysian court gave it the all-clear to begin operating its rare earths processing facility in the country.

Lynas said the funds, to be raised via an underwritten placement and share purchase plan, would be used for working capital and general corporate purposes during commissioning and ramp-up of its controversial plant.

The company expects the raising will provide all the funds it needs to complete the plant and bring it into production and achieve positive cashflow.

The raising announcement follows yesterday’s news that the company had received Malaysian court permission to begin operating its processing plant in Gebeng.

The Kuantan High Court ruled against Malaysian activists who had sought an injunction against Lynas' temporary operating licence for the plant.

The raising will comprise of an initial $60 million placement to institutional investors and a second $90 million tranche subject to shareholder approval.

Retail investors will also be invited to take part through a $50 million share purchase plan, offering each shareholder up to a maximum of $15,000 worth of new shares.

The shares will be priced at 75 cents, a 6.8 per cent discount to the company’s last traded price of 80.5 cents.

JP Morgan will underwrite the placement and partially underwrite the SPP.